Here’s Why Memecoin Pepe is Rebounding

Pepe coin (PEPE) is experiencing a significant revival, bouncing back from recent lows as investor interest surges, whale accumulation increases, and acceptance of blockchain assets expands across the market.

PEPE’s recovery follows a period of volatility and declining prices. Over the past week, the coin has appreciated nearly 50%, rising from $0.0000083 to approximately $0.0000120, largely due to heightened investor confidence.

Currently valued at $0.00001183, PEPE has made a considerable recovery from its lowest point of $0.00000765 on July 5th. Here are some key factors contributing to its rising valuation.

### Market Sentiment

The sentiment surrounding PEPE has shifted to a cautiously optimistic outlook. Analysts believe that PEPE’s value is poised to continue its upward trajectory, buoyed by favorable market conditions and specific events. Notably, recent political developments involving former President Donald Trump have positively influenced the prices of various cryptocurrencies. Memecoins associated with Trump have seen increased demand, which is also benefiting the growth of other memecoins like PEPE.

### Surge in Whale Accumulation

A crucial factor in PEPE’s price increase is the significant rise in whale accumulation. Large holders of PEPE have been steadily increasing their stakes, signaling confidence in the coin’s long-term prospects. A report revealed that a prominent crypto entity, Nascent, recently converted a portion of its holdings into PEPE, acquiring over 141 billion coins, demonstrating strong belief in PEPE’s potential growth.

### Broader Market Acceptance and Liquidity

The recent “preliminary approval” by the US SEC for spot ETH ETFs has fostered greater acceptance for blockchain-based assets, including those linked to Ethereum. Since PEPE is based on the Ethereum blockchain, it is well-positioned to benefit from the growing interest in Ethereum-related tokens. The anticipated increase in liquidity and visibility from Ethereum ETFs could further drive PEPE’s price upward as more investors take notice of its advancements and ecosystem support.

### Large Holders Reduce PEPE Holdings

Despite the overall positive momentum, analytics indicate that some of PEPE’s largest holders have been selling off portions of their holdings in the past month. Data shows that addresses with holdings between $100,000 and $10 million have experienced notable selling activity. This trend suggests a cautious approach among larger holders, contrasting with the increasing confidence of smaller investors. The interplay between rising whale accumulation and the selling pressure from large holders introduces a complex dynamic to PEPE’s market outlook.

### What’s Next for PEPE?

PEPE’s Relative Strength Index (RSI) stands at 59.27, approaching overbought territory, which indicates strong buying interest. This level of interest could support continued price increases. If market conditions remain favorable, PEPE’s upward trajectory is likely to persist.